Hickmore looks to crossover indices in SWIP Strategic Bond

Luke Hickmore, the manager of the £77m SWIP Strategic Bond fund, has upped exposure to high yield and investment grade cross-over indices in a short-term bid to protect the portfolio against unknown risks in the market.

In reaction to recent volatility, Hickmore has cut investments in cash bonds in favour of the crossover indices. “It is not that we think anything is going to blow up, but in this environment it is difficult to pinpoint where the next problem is coming from,” he said. “We reduced our exposure to individual names substantially since the beginning of August and instead of buying them back through the drops we have been taking risk through the cross-over indices.” Hickmore now holds 10% in the Markit iTraxx Crossover Index, a credit default swap index compiled of 40 equally-weighted high...